It is obvious that the market it looking at “earnings’ much more closely for producers than their value of reserves in the ground. This is akin to somebody looking at their personal wealth in terms of only their “income”, and completely ignoring the things of value that they have saved over the years. It doesn’t make sense, and it will change.

PM Stocks with Large Reserves Have Bright Futures

It is evident that investors are used to buying stocks based on consistent earnings increases like the old “one penny above expectations” we saw in the Nasdaq bubble. PM Mining companies that are accumulating huge reserves that will be worth many multiples of their current value as the Gold Parabola continues rising are being penalized based on their production, now. This begs the question, “Would you rather sell your Gold now for $1,400 per ounce, or would you rather sell your Gold in the future for $3,000, or $5,000, or $7,000, or $10,000, or even $12,000 per ounce?” It is ironic that some investors who hold physical Gold and feel great about its rise in price cannot seem to generalize that concept to a PM mining company holding huge amounts of Gold reserves in the ground- many times along with huge amounts of Silver, Copper, and other minerals. By the end of this Bull market, when the value of the PM reserves in the ground goes parabolic in price, the mantra will be “It’s the reserves- stupid.” This becomes reality as the huge leverage of marginal reserves in the ground, today, eventually become the highly valued measured reserves of tomorrow.

http://news.goldseek.com/GoldSeek/1300115974.php